Israel Discount Bank

Overview

Israel Discount Bank, Ltd.‡R1R‡

native name	בנק דיסקונט לישראל בע"מ
type	Public
traded as	tase: DSCT
foundation	Tel Aviv, Mandatory Palestine April 5, 1935
location city	Discount Bank Tower, Tel Aviv
location country	Israel
key people	Dani Yamin (Chairman) Avraham Levi (CEO‡R2R‡)
industry	Banking Financial services
products	Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, securities, asset management, wealth management
services	Financial services
revenue	₪ 9.02 billion (2018)
operating income	₪ 1.5 billion (2018)
assets	₪ 239.1 billion (2018)
equity	₪ 17.1 billion (2018)
homepage	http://www.discountbank.co.il

Israel Discount Bank, Ltd. is an Israeli banking institution that offers a range of financial services, including retail banking, commercial banking, private banking, and financial services. The bank, headquartered in Tel Aviv, operates 112 branches throughout Israel.[3]

Founded on 5 April 1935 in Tel Aviv, Mandatory Palestine, the bank has grown to become a significant player in the Israeli banking industry. It is a public company listed on the Tel Aviv Stock Exchange under the symbol DSCT and is included in the Tel Aviv 35 Index.[4]

The bank's product portfolio includes credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, securities, asset management, and wealth management. It serves its customers through various channels including

History

British Mandate era

Discount Bank was established on 5 April 1935, as Eretz Yisrael Discount Bank Ltd., by Leon Recanati and his partners, Yosef Albo and Moshe Carasso.[6][7][8][9][10] In its early days, Discount Bank operated out of a small hotel on Nachlat Binyamin Street in Tel Aviv. It later moved to its permanent location at 39 Yehuda Halevi Street. Today, Discount Bank's headquarters are located at the Discount Bank Tower, a 30-story skyscraper located at 23 Yehuda HaLevi Street in Tel Aviv, which completed construction in 2006.

Discount Bank derives its name from the word "disconto" - discount of bills.[11] Discount Bank began its operations at a time of relative economic prosperity due to foreign capital that was brought into the country by members of the Fifth Aliyah in 1935, and grew significantly in its initial years of operation.

Economic growth declined with the outbreak of the Arab Revolt in 1936, and worsened even more after the outbreak of World War II. Despite the deterioration of the economy, Bank Discount profits rose due to its policy of granting loans on good terms in response to the legislation imposed by the British Mandate, which limited withdrawal of deposits.[12] Alongside its financial activity, the bank contributed to the strength of the Yishuv through the establishment of Kadima, an organization that granted scholarships, opened an assistance center for the needy and, in conjunction with the Jewish Agency for Israel, helped establish agricultural settlements for immigrants from Arab countries.[13]

In 1944, Discount Bank acquired the Haifa-based Mercantile Bank[14] and several years later also acquired the local operations of the Ottoman Bank,[15] Barclays Bank and Hollandsche Bank-Unie.[16][17]

In 1945, Recanati died and management moved to his sons.[18]

State of Israel

In the 1950s, Discount Bank opened additional branches in Europe. It began investing in Israeli companies through the Israeli Company for Financing and Investment, which it had acquired. In those years, thanks to the bank's accelerated opening of branches around Israel and extension of its opening hours to the afternoon, the bank grew to become the second largest bank in Israel.[19][20] At the beginning of the 1960s, the bank expanded its activity both in Israel and overseas. In 1961, for the first time in the banking industry, the investment company, Discount Investments, was founded. What's more, the bank was awarded the right to issue Diners Club credit cards[18] and was the first bank to offer its shares to the public. In 1964, the bank was awarded the Kaplan Prize for being the first bank to computerize its operations.

In the 1970s, the bank continued its momentum of growth and expansion, integration of advanced technologies and modern computer systems and improvement of customer service. In 1970, the bank acquired 50% of Barclays Bank and the name of the bank changed to Barclays-Discount.

Israel Discount Bank

History

British Mandate era

State of Israel

Digital banking and fintech

Subsidiaries

Controversy

See also

External links

References